The main objective of the Financial Markets Authority (FMA) is to promote
the development of fair, efficient and transparent financial markets.

Amanah KiwiSaver Plan

Our aim across all our activities is to raise the standard of conduct, and
increase investor and market confidence to support economic growth in
New Zealand.
We are one of several government agencies with a role in regulating
KiwiSaver, which amounts to a substantial part of New Zealandâ&#x20AC;&#x2122;s
collective wealth.
For many New Zealanders, KiwiSaver may be their first investment and may
be a large part of their retirement savings and ultimate financial security.
We are required to report each year on our main KiwiSaver activities. This
yearâ&#x20AC;&#x2122;s report covers the period from 1 July 2016 to 30 June 2017, and
contains a summary of the statistical returns required to be lodged by
KiwiSaver schemes as at 31 March 2017.

More information
Along with this report, we have published an interactive online report
showing key trends based on the information given to us by KiwiSaver
providers. Visit the FMA website to view this report.

Switches out of default investment
product into other investment funds

23

Switches between investment funds

24

Appendix 8

Profile of switches between investment funds

25

Appendix 9

Analysis according to size of scheme assets

25

Appendix 10 Analysis by nature of scheme

26

Appendix 11 Analysis according to nature of scheme
and size of scheme assets

27

1

Financial Markets Authority | KiwiSaver annual report 2017

Executive summary
In the year to 31 March 2017 – the period
covered by the statistics we receive from
KiwiSaver providers – gross investment
returns for KiwiSaver schemes more than
doubled compared with 2016, up
$1.4 billion (108%), from $1.3 billion in
2016 to $2.7 billion this year.

Overall increase in assets
Total KiwiSaver assets rose $7 billion
(20.7%). There were increases in all types
of contributions apart from the Crown.
Standard member contributions increased
by $400 million (13.7%), and lump sum
contributions rose $59.7 million (15.2%).
Employer contributions increased
$200 million (11%) to $1.8 billion.
However, Crown contributions declined
$31 million (4.3%) to $697 million, down
from $728 million in 2016. This is in
line with a rise in the number of noncontributory members, who do not
qualify for the Member Tax Credit (MTC).

First-home withdrawals
Over the year, 30,256 members withdrew
$614 million to help purchase their first
home. This is $118 million (23.8%) more
than the $496 million withdrawn in
2016, and a significant increase on the
2015 figure ($214 million). The average
withdrawal in 2017 was just over $20,000.

Financial hardship
withdrawals
More people are withdrawing money
because of serious financial hardship. This
year, the average withdrawal was $5,786.

Financial hardship withdrawals

13,970
members

Overall this year, total KiwiSaver
membership increased 4.4% to 2,722,147.
This was an increase of 113,764 members
since 2016. However, year-on-year overall
growth figures declined, dropping from
8.3% in 2015, to 4.8% in 2016, to 4.4%
this year.

withdrew

$81 million

Scheme transfers
For the second year in a row, the number
of members who transferred between
schemes outnumbered new members.
In 2017, 172,017 members transferred
between schemes and 154,531 people
joined KiwiSaver – compared to 2016,
when 173,272 people transferred
between schemes and 145,856 people
joined.

2

up on last
year

25%

KiwiSaver annual report 2017 | Financial Markets Authority

Default schemes

Changes during the year

The nine default schemes increased their combined assets to $4.6 billion in 2017, up from
$4.2 billion last year. However, their share of total KiwiSaver scheme assets continued
to slide, from 12.5% to 11.3%. The default schemes’ share of total membership also
continues to fall, down to 16.4%, from 17.1% in 2016, as members switch to other funds
within their provider’s scheme or transfer to other schemes. In total, 75,155 KiwiSaver
investors switched or transferred out of default schemes in the period, taking just over
$700 million in assets with them.

This year, the Government announced
that from 2018 all KiwiSaver annual
member statements must show in dollars
the sum of the fees each member has
been charged. We welcome this change,
which will make the individual fee
information in annual statements more
meaningful and engaging.

16,902 people switched approximately $173 million to other funds within their provider’s
scheme and 58,253 transferred $529.3 million to other providers.

Switches within their provider’s
scheme

Switches to other provider’s
schemes

16,902
KiwiSaver investors

58,253
KiwiSaver investors

switched

switched

$173 million

$529.3million

Default member engagement
Since 2016, when we first reported on the success of KiwiSaver providers’ financial
literacy efforts, we have taken steps to promote further member engagement by
providers. However, this year’s statistics show that, overall, the results are worse.
We accept that major changes can’t be achieved overnight, but this is a disappointing trend
that needs to be remedied. As part of our ongoing discussions with default providers, we
have reminded them that default status comes with strong commercial benefits. But it also
comes with a responsibility to address the financial literacy of their members.

Also, in June, the Minister announced
the planned introduction of retirement
savings and income projections in all
KiwiSaver annual statements.

Behavioural insights
In 2017, we released the results of our
first behavioural insights trial, which
examined some simple ways to improve
engagement with default KiwiSaver
members. Working with the Commission
for Financial Capability (CFFC) and the
Inland Revenue Department (IRD), we
introduced a flyer into the IRD’s welcome
pack to encourage new KiwiSaver
members to make positive decisions
about their financial future.
As part of the transfer-out process, we
looked at transfer procedures and their
length. The results were positive: 97.5%
of default-scheme transfers were within
the required 10-day timeframe, and 99.4%
of other KiwiSaver schemes met their
35-day requirement.
As the conduct regulator of KiwiSaver,
we continue to focus on the transparency
of KiwiSaver providers and the decisionmaking tools and abilities of KiwiSaver
members.

3

Financial Markets Authority | KiwiSaver annual report 2017

Key trends
The following statistics are from the 2017 annual statistical returns for the period
1 April 2016 to 31 March 2017*
Membership

Fees

Scheme membership increased from
just over 2.6 million to 2.7 million.
This is a 4.4% increase during 2017.
Below we show the year-on-year
increases.

Investment management fees rose $46.8 million (21.3%), from $219.5 million in 2016
to $266.3 million in 2017. Per member, the average investment management fee
paid increased from $84.15 in 2016 to $97.82**. Administration fees rose $4.6 million
(5.9%), from $77.8 million to $82.4 million. Per member, the average administration
fee paid increased from $29.84 in 2016 to $30.28. As a percentage of investment
returns, investment management fees dropped from 16.87% to 9.84%
(a 41.7% decline).

4.4% 4.8% 8.3% 9.6%
Investment management
fees (2016 to 2017)

$46.8 million

$13.67 average
per member

Administration
fees (2016 to 2017)

$4.6 million

$0.44 average
per member

2017 2016 2015 2014
The number of contributing
members rose from 1,494,231
to 1,572,693.
New members joining a scheme
for the first time was 154,531. Net
new members after permanent
withdrawals and other exits was
121,913.

2017

172,017
members transferred

2016

173,000
$1.98
billion members transferred

$2 .014
billion

Earnings

Contributions

The gross amount earned from the
investment of scheme assets rose
$1.4 billion (108%) to $2.7 billion, a
marked increase from $1.3 billion in
2016 â&#x20AC;&#x201C; but slightly short of the
$3 billion earned in 2015.

Crown contributions declined further from $728 million in 2016 to $697 million this
year, a slip of 4.3%. This is in line with the rise in the number of non-contributory
members, who do not qualify for the member tax credit.

Scheme assets rose

108

%

*Unless another source of data is noted.

4

Transfers between non-default KiwiSaver schemes

Employer contributions increased from $1.6 billion to $1.8 billion, while member
contributions increased from $3.2 billion in 2016 to $3.6 billion. As part of this,
lump sum payments increased from $394 million in 2016 to $453 million; and other
voluntary contributions rose slightly from $149 million to $155 million.

crown contributions

$31 million

employer contributions

$200 million

**Based on average member balance of $15,000.

member contributions

$400 million

KiwiSaver annual report 2017 | Financial Markets Authority

Non-contributing
members

Transfers from other superannuation schemes

At the end of March 2017, just over
1.1 million members were not
contributing to their KiwiSaver funds.
Although the number of
non-contributing members
increased by 3.2%, the proportion of
non-contributing members dropped
slightly to 42.2%, from 42.7% at the
end of 2016.

Over
million
was transferred into KiwiSaver schemes
from overseas and other registered
superannuation schemes this year.

Non-contributing members are
members on PAYE remuneration
who:

•
•
•

$172.5
25%

This is a
increase on
2016, though still down on the $232
million transferred in 2015. Transfers
from Australian schemes increased to
$116.5 million, from $98 million in 2016.
Transfers from other schemes increased

Have not made a KiwiSaver
contribution in the two months
before 31 March 2017
Have failed to make contracted
payments, or
Are on a contributions holiday.

Of these non-contributing members
428,836 were either over 66 years or
younger than 17 years.
Some non-employee members chose
to make lump-sum contributions
in the months leading up to 30
June, rather than making regular
contributions throughout the
year. These members are seen as
contributory members.

to $55.9 million, from $40 million, still well
down on a high of $154 million in 2015.
Going the other way across the ditch,
since full trans-Tasman superannuation
portability came into effect three years
ago, payments from KiwiSaver schemes
into Australian superannuation
schemes have continued to creep
upwards: from $1.1 million in 2015,
to $2.9 million in 2016, to $3.1 million
in 2017.

The total number of retail schemes chosen by members increased from 24 to 25.
During the year, the total assets of retail schemes grew

$6.6 billion

2017 $35.4 billion
2016 $28.8 billion

an increase of nearly

23%

The number of restricted schemes (those aimed at specific groups) declined further,
from eight to five. As a result, the total membership of restricted schemes dropped
very slightly from 25,845 to 25,235; however, total assets rose from $692 million to
close to $800 million.
5

Financial Markets Authority | KiwiSaver annual report 2017

Withdrawals
From the total withdrawals this year (over $1.4 billion), $631 million went to retirees, up from $513 million in 2016. Withdrawals for
first-home purchases rose from $496 million to $614 million this year. Withdrawals for serious financial hardship rose by nearly 25%,
from $65 million to almost $81 million. Permanent emigration withdrawals also rose, from $19 million in 2016 to $28 million in 2017.

Members
withdrew over

$1.4 billion

first home buyers

$631million $614million

Exempt employers
and complying
superannuation funds
The number of exempt employers
and complying superannuation
funds declined. At the end of June
2017, 234 private-sector employers
were exempt from enrolling new
employees into KiwiSaver, down from
255 in 2016. There were 16 complying
superannuation funds at the end of
June 2017 registered on the Disclose
Register, compared with 19
in 2016.

Employer preferred
KiwiSaver schemes
A growing number of employers
are selecting preferred KiwiSaver
schemes their new employees can
enrol in. This year, 20,004 employers
had notified the IRD of their preferred
schemes, up from 19,475 last year.

6

retirees

hardship

$81million

Membership profile

emigration

$28million

51%

The ratio of female to male KiwiSaver
members remains the same

49%

year
year
year
year
olds 18-35 olds 36-50 olds 51-65 olds >65 olds
<17 year

12.2% 36.5% 25.6% 22.1% 3.6%
2016 13.4%

2016 Stable

2016 25.3%

2016 Stable

2016 3.4%

Size of schemes

Number of schemes

Two KiwiSaver schemes manage
more than $5 billion in assets, while
10 manage over $1 billion. Together
these schemes represent nearly 94%
of members, up from 87% in 2016.
There are now fewer schemes with
under $10 million in assets, down from
seven in 2016 to only three this year â&#x20AC;&#x201C;
with a membership of only 1,618.

There are now 30 retail and
restricted KiwiSaver schemes, down
from 32 in 2016. The two schemes
deregistered to 30 June 2017 were
Seafarers KiwiSaver Scheme and Tait
Communications KiwiSaver Scheme.

Financial Markets Authority | KiwiSaver annual report 2017

Key activities
The following activities relate to the period 1 July 2016 to
30 June 2017

Annual statements
From 2018, all KiwiSaver annual member
statements will need to show the total
amount of fees charged in dollar terms.
We want annual statements to be a tool
to enable New Zealanders to make better
decisions about their KiwiSaver.
This is a direct result of our work and
research with the Ministry of Business,
Innovation and Employment (MBIE).
During the year, we consulted with
industry to decide how to ensure that
investors receive the information in an
accurate and consistent way. The resulting
fees methodology was finalised in July
2017, after the reporting period. We are
encouraging providers to show the fees
as a percentage. This helps investors
to make an easy comparison between
their provider and others. We want to
see providers showing their fees in both
dollar value and as a percentage – and we
are encouraging providers to do this.
In June 2017, the Minister announced
retirement savings and income
projections will also be included in
KiwiSaver annual statements. We will be
working with MBIE and the CFFC on the
details and timeframes of these changes.

KiwiSaver advice
guidance
In November 2015, we published a report
on sales and advice practices*.
In the report we noted that just three out
of every 1000 KiwiSaver members, at the
date of publication, received advice about
transferring their KiwiSaver fund.
Since then, we received feedback from
providers that our 2012 KiwiSaver sales
and advice guidance was a barrier to

members getting the help they needed
to make informed decisions about
their KiwiSaver.
We took on board this feedback and
revised our KiwiSaver sales and advice
guidance, published in March 2017.
The revised guidance encourages
providers to give members advice in four
key areas:

KiwiSaver works and why it’s
• How
important to be in it
• Choosing the correct contribution rate
• Identifying the right type of fund
• How to choose the correct tax rate.
The report also focused on transfer
behaviour. The guidance shows how to
do this on a class basis, and also covers
the use of incentives. Our view is that
incentives can be offered, as long as they
don’t distract a customer from making
good decisions. We’ve received feedback
that some providers are now updating
their sales and advice practices.
To help KiwiSaver members make
informed decisions about their
investments, we also released a guide
for consumers on the factors they
should consider when thinking about
changing providers.

Behavioural insights
research
In June, we released the results of our
first behavioural insights trial. Working
with Kiwi Wealth, we found that making
content and layout changes to default
member welcome communications
meant members were more likely to
move out of default funds, and less likely
to transfer to another provider.

*fma.govt.nz/assets/Reports/151117-Sales-and-advice-report.pdf

8

KiwiSaver annual report 2017 | Financial Markets Authority

A second trial, with ANZ, is now underway. This trial will test whether using messages
such as ‘most New Zealanders seek advice at this age’ can prompt more ANZ KiwiSaver
members to get retirement advice, or use retirement planning tools when they hit 56
years old. Other providers have also expressed interest in participating in trials over the
coming year.
We also worked with the CFFC and the IRD to insert a flyer into the packs the IRD sends
to new default KiwiSaver members. In the first two months the flyer was included in the
packs, opt-out rates declined, although it is too early to be confident there is a link.

50%

received old letter
(Control group)

3,427

KiwiSaver fund members
in the trial

50%

received new letter
(Treatment)

Reviewing disclosure
We have reviewed the product disclosure
statements for all KiwiSaver providers
as part of the final transition to the FMC
Act. We also provided guidance on the
preparation of the new fund updates
and on the information that must now
be included on the Disclose Register.
We have started drawing data from
the Disclose Register to help with our
reporting, and are currently exploring
publicly releasing KiwiSaver fee and
performance information.

KiwiSaver working group
We have been working with an industry
working group (members include
KiwiSaver providers, the Financial Services
Council and Workplace Savings and the
CFFC) to develop an industry glossary of
terms. The glossary will ensure investors
receive consistent explanations of
technical terms.

Ongoing activities

•
•
Clear call to action

•

Simplified layout with 3 easy steps

Social norming messages —
you’ve joined others,
9 out of 10 have made a choice

•

Working with IRD to manage the
registering and deregistering of
schemes
Continuing to manage the Default
Monitoring Panel, which supervises
the nine default schemes.
Administering the KiwiSaver
exempt employers register. From
1 December 2016, the complying
superannuation funds register
ceased to be a standalone register.
The information about complying
superannuation funds is on the
Disclose Register.
Promoting KiwiSaver messages
to consumers using various media
channels.

9

Financial Markets Authority | KiwiSaver annual report 2017

Focus area: transferring-out times
We asked KiwiSaver providers for data on member transfers out of their schemes from
1 October to 31 December 2016. We analysed whether providers had met their
obligations to transfer members in the timeframes prescribed by law, which is 10 days
for default KiwiSaver schemes and 35 days for other KiwiSaver schemes.
We found a small number of transfers out failed to meet the legal requirements. For
default schemes, 97.5% of transfers happened within 10 days. Other KiwiSaver providers
generally took longer, with 79.8% transferring within 20 days, and 99.4% meeting their
35-day time standard.
Number
transferred

Number outside Percentage outside
time standard
time standard

Default KiwiSaver
schemes

11,266

281

2.5%

Other KiwiSaver
schemes

25,800

158

0.6%

We asked those who didn’t meet the standard legal timeframe why this was.
The key themes of their responses included:

Our focus on transfer times has led to
supervisors updating their reporting
requirements so they are alerted to
outstanding transfers out more quickly.
Several other KiwiSaver providers have
streamlined their processes and are
escalating any issues after 20 days, rather
than after the 35-day legal timeframe.
We made it clear to all providers that they
must complete end-to-end transfer out
within the legal timeframe. This means
money must be actually in the member’s
new account within 35 days, not just set
up to be paid.
Some providers told us they’ve started
thinking about how to make the transferout process better for their customers.
We would encourage all providers to
consider how to keep their departing and
incoming customers informed about the
transfer process.

KiwiSaver annual report 2017 | Financial Markets Authority

Default scheme member engagement:
encouraging informed decision-making
Background
KiwiSaver providers with default scheme
status are allocated new KiwiSaver
members to their default fund by IRD on
a regular basis. Default status is financially
rewarding for these providers, but the
status comes with conditions. Breaches of
those conditions can lead to termination
or suspension of their default status by
the Minister of Commerce.
Since July 2014, default providers’
responsibilities have included addressing
the financial literacy of their members
– particularly in default schemes. This
recognises that default members are new
to KiwiSaver and may have lower levels of
knowledge about it. Consequently, they
probably have not made an active decision
to choose the default fund. These members

may end up staying put in the default fund,
rather than making an active choice.

have been clear that we expect to see
improvement in both effort and results.

The financial literacy responsibility
requires providers to report to us
quarterly, about:

2017 results

•
•

How they engaged with their
default members to encourage
them to choose an investment.
The number of default members
making an active fund choice.

We regard active choice as important, as
it indicates the provider has genuinely
engaged with its members to help them
make informed decisions.
We first reported on the success of
KiwiSaver providers’ financial literacy
efforts in 2016. Those results were
considered a baseline. Since then we

As the table below shows, for four of
the nine default KiwiSaver providers,
the results are worse than in 2016. This
is disappointing to see. Again, this year
we contrasted each provider’s success
rate against transfers in and out of their
scheme to show barriers to contacting
members are surmountable.
It is also important to point out the steady
increase in fee income from default
members, despite numbers in these funds
declining. We have provided more detail
in the table on page 15 titled Average fees
paid by KiwiSaver members in default
schemes.

Summary of default KiwiSaver scheme members
2016
Provider

2017

Default
members

Active choice
(%)

Active choice
(no.)

Default
members

Active choice
(%)

Active choice
(no.)

ANZ

79,437

6%

4,868

75,927

5%

3,651

AMP

133,526

8%

11,007

118,529

2%

2,286

ASB

94,870

1.5%

1,441

92,520

1.5%

1,394

Fisher

73,703

4%

2,781

71,498

5%

3,462

Mercer

91,802

5%

5,033

85,571

3%

2,553

BNZ

12,548

3%

355

17,939

3%

449

Booster (Grosvenor)

10,229

22%

2,205

14,278

9%

1,282

KiwiWealth

11,954

4%

478

17,655

4%

624

Westpac

11,891

4%

440

17,762

7%

1,201

11

Financial Markets Authority | KiwiSaver annual report 2017

Summary of member transfer activity

Provider

Our view

Transferring in

Transferring out

Members from other providers
schemes transferring in to the
named provider’s scheme

Default members from the named
scheme transferring out to
another provider’s scheme

2016

2017

2016

2017

ANZ

35,711

30,908

10,139

9,373

AMP

13,158

4,193

21,498

11,982

ASB

27,000

24,825

8,739

8,286

Fisher

9,021

14,550

8,770

9,299

Mercer

11,703

2,619

12,670

9,847

BNZ

14,206

14,114

1,644

2,675

4,488

4,653

2,988

2,785

KiwiWealth

16,766

19,558

1,554

1,754

Westpac

19,771

25,566

1,328

2,252

Booster (Grosvenor)

This is the second year we have reported
these results. At this stage, we don’t think
it’s appropriate to use our powers under
the KiwiSaver Act* to require remedial
action from providers to address this
issue. But, we do think it is clear that
default providers need to do more to
better engage their members.
So, we’ve communicated our concerns to
the CEOs of default providers as follows:

•
•

•

When we asked providers why their active choice results were declining, they told us:

•
•
•

It was too soon to tell if efforts were successful
The efforts they made were unsuccessful (in some cases, there is little evidence
the provider tried anything else)

•

Other work took priority (such as the Financial Markets Conduct Act transition).

We accept we need to be realistic about how quickly, and by how much, active choice
results improve. We also acknowledge that in some cases, the investors that are easier
to engage with have already chosen another fund. This means the remaining default
scheme members can pose more of a challenge when it comes to engagement.
However, we still expect providers to review their results again and see if they have
done enough to engage with their members.

•

We expect efforts and results to
improve
We expect the undertakings
about addressing the financial
literacy of their members, made
in their tender for default status,
are delivered upon, or updated to
something more effective
We want reporting on their
broader education initiatives for
all members – not only default
members – to focus not just
on what they are doing, but to
evaluate their effectiveness
Their member financial literacy
efforts will form part of our
ongoing engagement with them
through the default monitoring
panel, supervisory visits and other
meetings
We are prepared to partner with
them in behavioural insights
trials, to address default member
engagement or other challenges.

We expect each provider to stick to the promises they made in their tender for
default status.

*Under the KiwiSaver Act we are able to require any default provider to take remedial action to address breaches of their Instrument of Appointment. Further, if the
remedial action is not done, or unsatisfactory, we can recommend the Minister of Commerce suspend new allocations of default members to the provider concerned, or
even terminate their default status.

12

Financial Markets Authority | KiwiSaver annual report 2017

Providers’ results
Phone calls and personal interaction
Talking to default members about their
options over the phone is the most
successful approach. One provider
reported that 85% of members they
contacted made an active choice after an
initial phone call.
Process changes
Removing barriers such as the need for
members to have ID verification before
they can switch funds significantly lifted
active choice for one provider. Several
providers also achieved improvements by
implementing online fund switches.
Efforts to improve member contact details
Initiatives include employer information
to contact difficult-to-reach members,
and incentive campaigns to encourage
members to update their own details.
More than one follow-up
Some providers trialled a series of followup emails using different or progressively
stronger subject lines.
Others use a pop-up reminder function
within their online tools.
Changes based on behavioural insights
Using social norming messages such
as: ‘You have joined over <no. scheme
name> members who benefit from easyto-understand monthly reporting and
award-winning customer service.’

Provider activities
We asked providers about their efforts
to attract new members, including the
customers of other KiwiSaver providers.
Two providers ran substantial active
campaigns: one involved TV, billboards,

14

and online and social activity, and one
focused on a data-driven online approach.
However, most providers ran more modest
campaigns, such as customer emails or
using branch staff or advisers to promote
their KiwiSaver scheme.
Providers advise they offer standardised
advice, with personalised advice on
request only. They use investor profile
tools, and ensure staff and advisers
prompt potential members to consider
any benefits they will miss out on if they
change schemes.

Why fees matter
We don’t know how much it costs each
default provider to offer default products.
However, as membership grows we
expect the costs per member to fall,
unless overall costs rise in the market
faster than we see (or hear about), or
providers direct more money to provide
better service. This includes increased
member engagement efforts. We are not
aware that this is happening currently.
The tables on page 15 set out the average
management fees, as well as total fees
paid by default scheme members.
Average fees must take into account the
number of non-contributing members
and under-17 year olds in default
KiwiSaver schemes. This factor means it is
hard to clearly state the fees paid by many
members.
The figures show some key themes:

•
•

Average fees per member is
increasing – both management fees
and total fees.
Management fees are a growing
portion of the dollar value of
overall fees. This makes sense as
management fees are a percentage,
while other fees are a fixed sum.

Every three years, default providers
can advise the Minister of Commerce
that they intend to change the fees and
charges for their default products.
This process is currently being run by
MBIE and concludes in September 2017
(after the period of this report).
We are involved in the process, and have
provided fee income information to MBIE
and the Minister of Commerce.

KiwiSaver annual report 2017 | Financial Markets Authority

Average fees paid by KiwiSaver members in default schemes
2012

2013
Default members

2014
Default members

Default members

447,274

464,896

461,354

Management fees per member

Management fees per member

Management fees per member

Total fees* per member

Total fees* per member

Total fees* per member

Total fees captured** by managers

Total fees captured** by managers

Total fees captured** by managers

$23.69

$28.73

$46.42

$20,922,679

$51.81

$23,987,222

2016

2015
Default members

$28.97
$63.74

$29,262,680

2017
Default members

Default members

453,795

444,786

446,534

Management fees per member

Management fees per member

Management fees per member

Total fees* per member

Total fees* per member

Total fees* per member

Total fees captured** by managers

Total fees captured** by managers

Total fees captured** by managers

$38.34
$72.20

$32,592,662

$39.30

$66.09

$29,397,953

$43.38
$70.69

$31,565,941

*Total fees include administration fees and other charges.
**Includes management and administration fees, but excludes fees that are a cost to the member but not captured by the manager, such as tax and trustee fees.

15

Financial Markets Authority | KiwiSaver annual report 2017

Facts at a glance
These statistics are taken from the 2017 annual statistical returns and refer to the period
from 1 April 2016 to 31 March 2017 1.
20172
Number of schemes

1
2
Some positions stated as at 31 March 2017 (eg assets invested), others are flows to 31 March 2017 (eg returns).
Some totals may not add exactly due to
4
rounding. 3These figures are based on actual, non-rounded totals.
While the asset share of restricted scheme remained steady, total assets rose 15.5%.

16

KiwiSaver annual report 2017 | Financial Markets Authority

Appendix 1

Income and expenditure summary
KiwiSaver schemes as at 31 March 2017

Default

Active

Total

4,208,822,809

29,569,413,114

33,778,235,923

Member contributions at section 64 contribution rate

445,365,641

2,537,430,658

2,982,796,299

Employer contributions

283,347,375

1,500,376,613

1,783,723,988

Crown contributions (section 226) and fee subsidies

Opening balance of scheme assets at start of annual return year
Categories of income for annual return year

104,646,954

592,248,052

696,895,006

Transfers of members’ accumulations into scheme from other
KiwiSaver schemes

7,788,796

1,974,781,097

1,982,569,893

Transfers of members’ accumulations into scheme from registered
superannuation schemes

3,122,527

52,847,563

55,970,090

Transfers of members’ accumulations into scheme from Australian
superannuation schemes

8,020,579

108,520,373

116,540,952

12,553,889

440,951,609

453,505,498

Lump sum contributions
Other voluntary contributions over section 64 contribution rate
Income from investment of scheme assets
Other income
Total income from annual return year

6,278,712

148,875,576

155,154,288

216,005,437

2,491,073,451

2,707,078,888

8,594,046

22,144,856

30,738,902

1,095,723,956

9,869,249,849

10,964,973,805

57,561,447

556,836,944

614,398,391

Categories of expenditure for annual return year
First home purchase withdrawals
Mortgage diversion withdrawals

3,072

146,444

149,516

51,862,591

578,934,584

630,797,175

Withdrawals on death

4,222,106

39,542,123

43,764,229

Serious illness withdrawals

4,394,272

27,738,752

32,133,024

Withdrawals or transfers on permanent emigration

4,099,348

23,537,254

27,636,602

Significant financial hardship withdrawals

8,128,331

72,707,762

80,836,093

529,304,132

1,461,502,234

1,990,806,366

422,965

2,638,978

3,061,943

KiwiSaver end payment date withdrawals

Transfer of members’ accumulations out of scheme into other
KiwiSaver schemes
Transfer of members’ accumulations out of scheme into
Australian superannuation schemes
Amounts required to be paid under other enactments

277,325

2,700,190

2,977,515

Invalid enrolments

2,970,454

2,702,586

5,673,040

Administration fees

12,193,487

70,232,840

82,426,327

Investment management fees

19,589,370

246,691,266

266,280,636

Trustee fees
Taxation
Other scheme expenses
Total expenditure for annual return year
Closing balance of scheme assets at end of annual return year
Notes:
The statistical returns are unaudited and may not include all transactions.
Some providers are not able to differentiate between types of transfers.
This means there are sometimes discrepancies between transfers to and
from KiwiSaver schemes.
Opening balances do not agree with last year’s report, closing balances
due to the change to accrued accounting.

457,088

5,171,659

5,628,747

25,377,379

140,752,739

166,130,118

118,608

28,195,624

28,314,232

720,981,976

3,260,031,979

3,981,013,954

4,583,564,790

36,178,630,983

40,762,195,773

In the current year 30,526 members withdrew for the purposes of
first-home purchase (108,043 members since inception).
In the current year 13,970 members withdrew funds due to significant
hardship (67,672 members since inception).

17

Financial Markets Authority | KiwiSaver annual report 2017

Appendix 2

Membership summary
KiwiSaver schemes as at 31 March 2017

Default members
Number of contributing members at start of annual return year

Active

Total

240,520

1,253,711

1,494,231

66,307

88,224

154,531

4,241

10,997

15,238

34,564

153,394

187,958

Members transferring into scheme from other KiwiSaver schemes

427

160,406

160,833

Members transferring into scheme from Australian superannuation
schemes

121

2,482

2,603

Members transferring into scheme from registered superannuation
schemes

45

527

572

105,705

416,030

521,735

2,181

18,111

20,292

Deaths

404

2,401

2,805

Permanent emigration exits

387

1,511

1,898

58,253

113,764

172,017

27

109

136

Other permanent exits*

1,545

2,860

4,405

Invalid enrolments

2,355

863

3,218

Members starting section 104 contribution holidays

6,808

26,817

33,625

33,471

171,406

204,877

Total temporary and permanent exits for annual return year

105,431

337,842

443,273

Number of contributing members at end of annual return year

240,794

1,331,899

1,572,693

Categories of entries of members for annual return year
New members (other than transfers from other schemes)
Members restarting contributions at end of section 104
contribution holidays
Members restarting contributions after stopping contributions
for any other reason

Total member entries for annual return year
Categories of membership exits for annual return year
KiwiSaver end payment date exits

Transfers out of scheme into other KiwiSaver schemes
Transfers out of scheme into Australian superannuation schemes

Members restarting contributions after having stopped contributions
without section 104 contribution holidays

34,564

153,409

187,973

Number of other non-contributing members (not on section
104 contribution holidays) at end of annual return year

181,636

863,728

1,045,364

Total number of members at end of annual return year

446,534

2,275,613

2,722,147

Non-contributing members on section 104 contribution holidays
Number of members on section 104 contribution holidays at start
of annual return year

Number of members on section 104 contribution holidays at end
of annual return year
Other non-contributing members (not on section
104 contribution holidays)
Number of other non-contributing members (not on section
104 contribution holidays) at start of annual return year

Note:
Some providers currently have an inability to differentiate between types of transfers, therefore there are discrepancies in transfers to and transfers
from KiwiSaver schemes. There are also timing differences.

19

Financial Markets Authority | KiwiSaver annual report 2017

Appendix 3

Age and gender profile of members
KiwiSaver schemes as at 31 March 2017

Default members
Age at end of annual
return year

Female

Male

Unknown
gender

Total default
members

3,780

3,656

261

7,697

18-25

33,855

38,791

1,391

74,037

26-30

29,562

31,977

442

61,981

31-35

27,690

28,779

388

56,857

36-40

23,644

23,886

322

47,852

41-45

23,643

22,709

245

46,597

46-50

23,458

21,338

217

45,013

51-55

20,634

18,722

185

39,541

56-60

16,808

15,253

142

32,203

61-65

11,603

10,912

69

22,584

66-70

4,551

4,635

19

9,205

71-75

1,025

1,028

1

2,054

76-80

2

0

3

5

396

506

6

908

220,651

222,192

3,691

446,534

17 and under

Unknown age
Totals

Active members
Age at end of annual
return year

Female

Male

Unknown
gender

Total active
members

17 and under

157,203

165,055

1,188

323,446

18-25

170,260

176,169

652

347,081

26-30

122,363

124,432

331

247,126

31-35

104,671

101,972

394

207,037

36-40

93,979

87,503

397

181,879

41-45

97,602

87,165

405

185,172

46-50

102,280

88,136

372

190,788

51-55

100,602

87,113

296

188,011

56-60

92,857

79,618

244

172,719

61-65

77,817

67,521

237

145,575

66-70

35,242

32,600

144

67,986

71-75

9,434

8,917

88

18,439

76-80

2

2

0

4

71

131

148

350

1,164,383

1,106,334

4,896

2,275,613

Unknown age
Totals

20

KiwiSaver annual report 2017 | Financial Markets Authority

Total members
Age at end of annual
return year

Female

Male

Unknown
gender

Total KiwiSaver
members

17 and under

160,983

168,711

1,449

331,143

18-25

204,115

214,960

2,043

421,118

26-30

151,925

156,409

773

309,107

31-35

132,361

130,751

782

263,894

36-40

117,623

111,389

719

229,731

41-45

121,245

109,874

650

231,769

46-50

125,738

109,474

589

235,801

51-55

121,236

105,835

481

227,552

56-60

109,665

94,871

386

204,922

61-65

89,420

78,433

306

168,159

66-70

39,793

37,235

163

77,191

71-75

10,459

9,945

89

20,493

76-80

4

2

3

9

Unknown age
Totals

467

637

154

1,258

1,385,034

1,328,526

8,587

2,722,147

Number of
members

Scheme assets
held for those
members ($)

67,611

86,737,154.80

141,926

1,117,318,562.63

Appendix 4

Profile of new default and other members
KiwiSaver schemes as at 31 March 2017

Default members allocated to scheme by Commissioner under
section 51 in annual return year
Other new members entering scheme in annual return year (including
transfers from other schemes and active choice members)
Note:
Some providers have included members who have since opted out whilst others have not.

21

Financial Markets Authority | KiwiSaver annual report 2017

Appendix 5

Summary of non-contributing members
(not on section 104 contribution holidays)
KiwiSaver schemes as at 31 March 2017

Number
of default
members

Scheme assets
held for those
members ($)

Number
of active
members

Scheme assets
held for those
members ($)

Number of non-contributing members (not on section
104 contribution holidays) at start of annual return year

176,293

926,915,170

832,074

4,734,051,847

Number of non-contributing members (not on section
104 contribution holidays) at end of annual return year

181,636

1,025,892,728

863,728

6,336,205,863

Note:
Non-contributing member means:
–– A member for whom no contributions have been received in the previous two months or
–– Where the member does not contribute via the IRD, the member has failed to meet their contracted contribution frequency.

Notes:
T he statistical returns are unaudited and may not include all transactions.
Some members will be invested in more than one investment fund. “Other” refers, in the main, to life stages products.
22

KiwiSaver annual report 2017 | Financial Markets Authority

Appendix 7A

Switches out of default investment product
into other investment funds 1
KiwiSaver schemes as at 31 March 2017
Switches in annual return year

Switches out of default investment
product under instrument of
appointment

Number of
members out
of default
investment
product

Number
of members
into other
funds

16,902

Amount ($)
out of default
investment
product

Amount ($)
into other
funds

172,707,108

Switches into other investment funds
Conservative

4,473

56,139,865

Balanced

6,790

58,744,324

Growth

6,747

44,678,648

405

4,419,368

Cash

639

5,212,737

Shares

947

2,868,528

Fixed Interest

12

19,915

Property

16

84,758

Socially Responsible

55

464,524

Other2

47

64,737

Active default
Single sector funds

Total of switches into other
investment funds

16,902

20,131

172,707,108

172,697,404

Note:
Switches out includes members making an active choice to switch out of their provider’s default fund into another of the provider’s funds, and
members who make an active choice to remain in the default fund. Note that some providers are currently unable to report both, so the total shown is
likely to be understated. 2 Refers, in the main, to life stages products.

1

23

Financial Markets Authority | KiwiSaver annual report 2017

Appendix 7B

Switches between investment funds
KiwiSaver schemes as at 31 March 2017

Switches into investment funds
in annual return year

Investment funds

Number of
switches

Amount ($)

Switches out of investment funds
in annual return year

Number of
switches

Amount ($)

Net change in
amounts ($)

Active default

2,246

19,873,390

2,904

19,962,507

-89,117

Conservative

25,324

362,452,206

32,713

407,591,255

-45,139,049

Balanced

42,763

615,765,531

39,801

606,795,993

8,969,538

Growth

43,713

466,202,839

37,437

512,336,519

-46,133,680

13,821

189,162,362

11,433

113,812,651

75,349,711

Shares

9,404

45,473,532

9,508

44,580,464

893,068

Fixed Interest

2,189

17,329,198

2,906

17,309,276

19,922

Property

1,625

8,346,000

1,690

9,734,391

-1,388,391

Single sector funds
Cash

Socially Responsible

318

4,809,937

63

755,889

4,054,048

Other3

616

5,845,588

437

5,820,774

2,914,802

142,019

1,725,260,583

138,892

1,738,699,719

-3,439,136

Total of switches
between funds
Notes:
3

Refers, in the main, to Life stages products.

Difference in cash-flow is due to deduction of PIE tax before re-investment.

24

KiwiSaver annual report 2017 | Financial Markets Authority

Appendix 8

Profile of switches between investment funds
KiwiSaver schemes as at 31 March 2017
How many switches between investment
funds made in annual return year

Number of
members who
made those
switches
Default

Active

15,748

82,104

1 switch
2 switches

6,580

3 switches

1,449

4 switches

539

5 switches or more

497

Appendix 9

Analysis according to size of scheme assets
KiwiSaver schemes as at 31 March 2017
Assets grouping

Number of
schemes

Total
assets
$m

Total
membership

Under $10m

3

15.41

1,618

$10m to under $100m

4

156.98

7,063

$100m to under $500m

8

1,866.33

96,923

$500m to under $1,000m
$1,000m to under $5,000m
$5,000m and over
Total

3

1,983.06

60,168

10

22,833.82

1,506,550

2

13,906.60

1,049,825

30

40,762.20

2,722,147

Notes:
The data has been obtained from statistical returns made by the trustees of KiwiSaver schemes 'registered' under the KiwiSaver Act 2006.
Some totals may not be exact, due to rounding.

25

Financial Markets Authority | KiwiSaver annual report 2017

Appendix 10

Analysis by nature of scheme
KiwiSaver schemes as at 31 March 2017
Nature of scheme

Default schemes

Number of
schemes

Total
assets
$millions*

Total
membership

9

4,583.6

446,534

Retail (active choice)

25

35,379

2,250,378

Restricted schemes

5

799.6

25,235

30

40,762.20

2,722,147

Total
Notes:

Default schemes statistics are only in respect of members and assets in the default investment fund option.
Retail (active choice) total assets and total membership figures include that portion of the default schemes where members have actively chosen to
participate.
The data has been obtained from statistical returns made by the trustees of KiwiSaver schemes 'registered' under the KiwiSaver Act 2006 to the
members and beneficiaries of those schemes.
Some totals may not be exact, due to rounding.
* See note 1 on page 24

26

KiwiSaver annual report 2017 | Financial Markets Authority

Appendix 11A

Analysis according to nature of scheme
and size of scheme assets
KiwiSaver schemes as at 31 March 2017
Number of schemes
Assets grouping

Retail

Restricted
schemes

Total

Under $10m

2

1

3

$10m to under $100m

2

2

4

$100m to under $500m

7

1

8

$500m to under $1,000m

4

1

5

$1,000m to under $5,000m

8

8

$5,000m and over

2

2

Total (all groups)

25

5

30

Retail

Restricted
schemes

Total

9.32

6.09

15.41

107.96

49.02

357.56

Total assets ($ millions)
Assets grouping

Default

Under $10m
$10m to under $100m

201.60

$100m to under $500m

1,660.08

206.25

1,866.33

$500m to under $1,000m

2,218.90

2,808.04

538.24

5,565.12

$1,000m to under $5,000m

2,163.10

17,956.80

20,120.96

12,836.80

12,836.82

$5,000m and over
Total, all groups

4,583.60

35,379.00

799.6

40,762.20

27

Financial Markets Authority | KiwiSaver annual report 2017

Appendix 11B

Analysis according to nature of scheme
and size of scheme assets
KiwiSaver schemes as at 31 March 2017
Total membership
Assets grouping

Default

Under $10m
$10m to under $100m

56,295

$100m to under $500m

Retail

Restricted
schemes

Total

1,049

569

1,618

5,110

1,953

63,358

88,795

8,128

96,923

$500m to under $1,000m

201,888

92,686

14,585

309,159

$1,000m to under $5,000m

188,351

1,096,106

1,284,457

966,632

966,632

$5,000m and over
Total, all groups

446,534

2,250,378

25,235

2,722,147

Notes:
Default schemes are included.
Default schemes statistics are only in respect of members and assets in the default investment fund option.
Retail (active choice) total assets and total membership figures include that portion of the default schemes where members have actively chosen to
participate.
The data has been obtained from statistical returns made by the trustees of KiwiSaver schemes "registered' under the KiwiSaver Act 2006 relating to the
members and beneficiaries of those schemes.
Some totals may not be exact,due to rounding.